Consider a monopsony market with supply P = 30 + 2QS and demand P = 90 - QD.
Round answers to one decimal place.
1) What is the monopsonist's marginal expenditure equation?
2) What is the monopsony equilibrium market price and output?
3) What are consumer, producer, and total surplus in the monopsony equilibrium?
4) How much dead-weight loss does the monopsonist create?
5) How much consumer surplus is gained relative to the long-run competitive equilibrium?
Score = 0